Mumbai: Most Indian stocks rose amid signs strengthening economic growth will drive earnings. Tata Steel Ltd climbed to a 21-month high after saying sales increased. Bharat Heavy Electricals Ltd (Bhel) reached the highest in two years.
Wipro Ltd, a software services exporter, fell for the first time in four days after the rupee touched a 19-month high, trimming the value of sales abroad.
"We're seeing good earnings and economic growth in India, and it's a favoured destination for foreign investors," said D.K. Aggarwal, who manages funds as chairman of SMC Wealth Management Services Ltd. in New Delhi. Still, "markets have run up too fast, and at these levels it looks expensive."
The Bombay Stock Exchange's Sensitive Index, or Sensex, was little changed at 17,941.37 as two more stocks rose than fell. The gauge's 14-day relative strength index, measuring how rapidly prices rose or fell during a period, was above 70 yesterday, when the Sensex reached a two-year high. Some investors see readings above 70 as a signal to sell.
Sensex has gained more than 9 per cent since Fin-ance Minister Pranab Mukherjee on February 26 pledged to trim the fiscal deficit from a 16-year high and boost funds for roads and power projects. The S&P CNX Nifty Index on the National Stock Exchange was little changed at 5,366.00, while the BSE 200 Index gained 0.2 per cent to 2,250.87.
Wipro declined 1 per cent to Rs715.2. The Indian currency touched a 19-month high against the dollar yesterday.
